Merge replication - please advise....

Here is what I did, please tell me where there issues are:
1. Created two SQL 2005 servers (primary & User)
2. Created a DB on each server (primary_DB & User_DB)
4. In SQL under replication / distributor properties, made both
primary & User publishers.
5. For primary_DB, under publisher properties, selected the
primary_DB to enable Merge replication
6. Created a new publication for the primary_DB, chose merge
publication for SQL 2005 only.
7. Selected my table, didn’t filter anything.
8. Set the snapshot schedule to run once every 12 hours (6:00 AM and 6:00 PM)
9. Created a new subscription, configured merge agent to use push
subscription, selected User as subscriber and User_DB as the
subscriber DB.
10. Set subscription synchronization schedule to 5:00AM.
This seemed to work with no issues Initial sync happens, pushes to
the User_DB, all changes accrued on the primary are pushed back out
to the user DB at 5:00AM.
Looks like it’s pretty easy to also make primary_DB a subscriber of
User_DB with a sync schedule of 6:00PM. Doesn’t seem to be any real
rule preventing a subscriber from also being a publisher and vice
versa.
Can you confirm the following:
I believe that the replication settings are controlled by the server and not stored directly within the DB. It looks as though you could completely destroy a DB and as long as a new blank DB came back on the correct server, the replication settings sitting on the publisher would force a full sync because it sees the other system as a subscriber.

Both are publishers of each other's DB, both are subscribers of each other's DB.Primary to user sync is a pull, user to master is a push.

The snapshots are differential so even if the master DB had 2 million rows change over the course of the day, I'm pretty sure they can be processed to the user DB in a less than 2 or 3 hours.
Thoughts? Thanks